On February 28, 2007, the Union and the Company went to arbitration on the “failure to pay for overfly” issue. As you may recall, the Union filed a grievance alleging that the Company changed the way flight attendants were paid for overfly if given a reassignment during a trip. The Union alleged that this change occurred in April/May 2006.  There was never any allegation that overfly was not paid correctly if a flight attendant was not reassigned during their trip.The Union is very pleased to announce that the System Board of Adjustment agreed to issue an immediate ruling in this case.  The ruling is based on discussions held between the Company and the Union at the arbitration hearing.  It is the Union’s belief that the payment method ordered by the System Board is the same payment method used before the change in early 2006.   Flight attendants will be paid the greater of scheduled or actual flight time plus their overfly.  Several specific examples of how overfly pay is to be calculated when rescheduled have been made a part of the Board’s ruling and award.  The Board’s inclusion of specific examples in its award should preclude future disputes over the payment of overfly in the event of a reassignment.

The award of the Board is prospective only and does not provide for any retroactive compensation.